After the discovery of oil fields, Baku became a special place, where various economic and political interests of international coalitions, industrial clans and leaders were concentrated and clashed. VK begins publishing chapters from the book by Ismail Agakishiyev "History of the Baku Oil Industry and the Second Oil Boom (second half of the 19th century - beginning of the 20thcentury)" The book presents a historical analysis of the emergence and current state of the Azerbaijani oil industry.
The development of the oil fields began with research in the field of physics and geology. The AIOC organized this research in cooperation with SOCAR, as the owner of the contract area. At the beginning of 1995 a tender for a three-dimensional seismic survey was announced. The Azerbaijani-American joint venture "Caspian Geophysical", founded in 1994, became the winner.
The company began field work in March 1995. It was conducted on board the geophysical vessel "Baku", upgraded in the UK, which met the requirements of world standards. Seismic exploration of the area ended in November 1995 and was followed by the processing of seismic data by the "Western Atlas" company, which had been declared winner of a corresponding tender.
In February 1995 engineering-geological and geotechnical studies were initiated on the contract territory, which were successfully accomplished in two sub-stages by the winner of a corresponding tender - the Dutch company "Fugro McClelland". SOCAR specialists also took part in field and laboratory work. By June 1996, hydrographic surveys of the contract area and the pipeline route had been completed. These works were carried out on board the ship "Naftogaz 64", upgraded specifically for this purpose.
The vessel was designed to carry out complex operations such as seismic profiling, seismic discharging, bathymetry sonar survey strip and echo sounding. By June 1996 all the field work was completed and the processing of data began. The experience of Azerbaijani Caspian oil workers was invaluable to professionals working on the implementation of the contract. For the use of SOCAR professionals, a scholarly work entitled "A study of the Azerbaijani experience in the field of engineering geology and seabed in the Guneshli, Chirag and Azeri fields" was written. It systematized geologico-geophysical and engineering-geological materials, as well as other data obtained in the process of the study of the Azeri, Chirag and Guneshli fields for nearly 20 years.
SOCAR specialists prepared platform number 1 at the Chirag field for exploitation. The following stages of work were accomplished: securing of the operational capacities of the platform, connected by 20 links to the bottom of the Caspian Sea at a depth of 120 m, construction of the upper structures, construction of helipads and a three-storey house for staff.
Requirements to the quality of work were the highest and were approved by the six inspections. During the early production of oil it was planned to pump associated gas from 24 wells to a compressor station in Oil Rocks, built in cooperation with "Pennzoil." Wire pipelines with a diameter of 16 inches and more than 50 km long were constructed for the transportation of gas to Oil Rocks. Then the gas would be transported through a pipeline to the Karadag gas distribution plant.
In the work provided by the contract the technical means of Azerbaijan were employed, for example "Kaspmorneft" and the pipeline-laying barge "Suleyman Vezirov". The Academy of Sciences of the Republic of Azerbaijan, together with the AIOC, was involved in environmental monitoring of the sea and air basin in the contract area. On September 30th 1996, the AIOC paid about 8 million dollars of taxes to the authorities of the Azerbaijani Republic for their employees, as well as their staff responsible for oversight and procurement. By this time, the AIOC had 369 local employees and their wages amounted to a total of 3 million dollars. The average monthly wage of an employee was 550 US dollars. More than half the budget of the AIOC, 369 million dollars, was allocated to the project of the early oil.
In August 1996 a modernized submerged floating drilling rig was commissioned. At the initiative of Heydar Aliyev it was called "Dede Gorgud", after the hero of an ancient Azerbaijani epic. In 1978, the rig was transported in parts down the Volga-Don Canal to the shores of the Caspian Sea. The first drilling works from this rig started in 1981 at the Guneshli field. Until 1995, it was used for the drilling of 8 wells, 7 of them at the Guneshli field and 1 at the Chirag field. Due to deterioration and lack of spare parts it became inoperable. On June 6th 1995, according to the decision of the AIOC, works on its modernization were initiated. In June 1995 the AIOC signed an agreement with an American company, "Santa Fe International", on the modernization of the complex. Contracts were signed with the contracting companies "Richblight" (UK) and "Consafe"(UK). The project cost of repairs amounted to 38 million US dollars, while modernization of the rig was accomplished in 11 months, 2 months ahead of schedule.
The purpose of the modernization was to provide drilling in deep waters up to 300 meters deep with the depth of the well amounting to 6 thousand meters, in accordance with international safety standards. The complex had been and remained the property of SOCAR and in agreement with the AIOC it was granted to the latter for repairs and operation for the drilling of three development test wells. The lease was issued only for 30 months. It was a great acquisition, which made drilling in deep waters possible. Prior to that, there had been no similar complex, neither in the Caspian Sea, nor in the whole post-Soviet space. The "Dede Gorgud" was used in the drilling of exploratory wells at a great number of deposits in the Caspian Sea. The first accomplished task of the upgraded "Dede Gorgud" was the drilling of the first exploration well at the Chirag field. The work began in 1996 and involved 96 people, 70 of whom were citizens of Azerbaijan.
